Discovery - University of Dundee - Online Publications

Library & Learning Centre

Estimation of the Spatial Weights Matrix under Structural Constraints

Estimation of the Spatial Weights Matrix under Structural Constraints

Research output: Working paperDiscussion paper

View graph of relations

Authors

  • Arnab Bhattacharjee
  • Chris Jensen-Butler

Research units

Info

Original languageEnglish
Place of publicationSt. Andrews
PublisherScottish Institute for Research in Economics
Publication date2011
StatePublished

Publication series

NameSIRE Discussion Papers
PublisherScottish Institute for Research in Economics
No.2011-48

Abstract

While estimates of models with spatial interaction are very sensitive to the choice of spatial weights, considerable uncertainty surrounds de nition of spatial weights in most studies with cross-section dependence. We show that, in the spatial error model the spatial weights matrix is only partially identi ed, and is fully identifi ed under the structural constraint of symmetry. For the spatial error model, we propose a new methodology for estimation of spatial weights under the assumption of symmetric spatial weights, with extensions to other important spatial models. The methodology is applied to regional housing markets in the UK, providing an estimated spatial weights matrix that generates several new hypotheses about the economic and socio-cultural drivers of spatial di¤usion in housing demand.

Research outputs

Download statistics

No data available

Library & Learning Centre

Contact | Accessibility | Policy